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In recent years, the United Arab Emirates (UAE) has emerged as a prominent destination for business and investment opportunities. One of the key choices available to entrepreneurs and investors are Dubai mainland license. Mainly this article aims to provide a comprehensive guide to starting a mainland company formation in Dubai, covering everything from the benefits and requirements to the process.

Let us guide you through this process!

Understanding Dubai Mainland License Benefits

Setting up a mainland company in Dubai offers several advantages, including:

Access to Local Market:

Mainland companies have the freedom to conduct business activities anywhere in the UAE, allowing them to tap into the lucrative local market.

No Currency Restrictions:

Mainland companies can transact in any currency without restrictions, facilitating international trade and business expansion.

Diverse Business Activities:

Mainland companies have the flexibility to engage in a wide range of business activities across different sectors, providing ample opportunities for growth and diversification.

No Limit on Company Size:

Unlike free zone companies, mainland companies in UAE have no limitations on the number of employees they can hire, allowing for scalable operations.

Ability to Bid for Government Contracts:

Mainland companies can participate in government tenders and bid for contracts, opening doors to lucrative opportunities.

Local Sponsorship:

Mainland companies require a local sponsor, who can be either an individual or a company, to establish a presence in the UAE. This partnership offers valuable local knowledge and support.

Dubai Mainland Company Setup: The Process

To get a mainland license in Dubai, the following steps need to be followed:

Determine Business Activity: Identify the type of business activity and ensure it complies with the regulations set by the Department of Economic Development (DED) in the respective emirate.

Choose a Legal Structure: Select the most suitable legal structure for your business, such as a Limited Liability Company (LLC), sole proprietorship, or partnership.

Find a Local Sponsor: Engage a local sponsor who will hold 51% of the shares in the company (for LLCs) or act as a local service agent (for branches and representative offices).

Trade Name Registration: Choose a unique trade name for your company and register it with the DED.

Submit Application: Prepare the necessary documents and submit the application for initial approval from the DED.

Obtain Approvals: Obtain approvals from relevant authorities, such as the Ministry of Economy, Ministry of Labor, and other regulatory bodies, depending on the nature of your business.

Draft and Sign the Memorandum of Association: Prepare the Memorandum of Association (MOA) or local service agent agreement, outlining the rights and responsibilities of all parties involved.

Lease Office Space: Lease an office space that meets the requirements of the DED.

Get Initial Approval: Obtain the initial approval from the DED, which includes the issuance of a trade license.

Pay Fees and Receive License: Pay the required fees and collect the trade license, which allows you to legally operate mainland company in Dubai.


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